Lavaca County, Texas


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Galilee has acquired a variety of working interests in a range of high impact, liquids rich exploration target in Lavaca County, Texas.  The interest levels range from ~ 35 – 45% . The Company has selected attractive prospects which are modest investments with very good risk return profiles.

Hoffer Klimitchek Prospect Area

In early 2015, Galilee announced a gas discovery in the Hoffer B1 well drilled in the Hoffer Klimitchek Prospect Area (“HKPA”). This well identified a total net pay of 43 ft in the Middle Midcox sandstone’s. These zones were tested and flowed in aggregate approximately 6 million standard cubic feet of gas per day (MMscfd), with demonstrated liquids content ranging as high as 50 barrels of condensate per million cubic feet of gas produced (bbls/MMscf).

However this well was unable to be completed as a producer due to poor wellbore conditions.

The Joint Venture participants in the HKPA have agreed to drill the Hoffer A  well offset to the Hoffer B1 well to target the development of these sands.

Galilee generally has a 35% WI before payout (28% WI after payout) in the HKPA, however Galilee has a 43.5% WI (34.8% WI after payout) in the Hoffer A prospect.

Spikes East Prospect Area 

The Spikes East Prospect area is located 10 miles south-southwest of Halletsville in Lavaca County.  The acreage lies on the downdip one third of the Midcox producing trend, south of the highly productive Exxon Koerth, Trio Hoffer and Trio Hermes Midcox wells.  3D seismic data indicates the presence of a 2000-2500 acre Middle Midcox depositional channel complex, named the Williams Channel, which contains multiple individual sandstone build-ups ranging in size from 50 to 150 acres which have not been adequately tested by previous drilling.

Williams 2

The first well to be drilled to test the channel axis, Williams 2, is located 2500 ft northeast of the Williams 1 flank well which had poor sandstone development.  The 3D seismic data indicates greatly increased thickness (approximately 200 ft) of Middle Midcox sandstone at this location, at a structural

position high to the previous wells.  The prospective area of the axial portion of the Williams Channel covers in excess of 1000 acres providing for multiple follow wells if successful.

Given the results from the Hoffer B1 well and the desire to start development activities in that field to address the Midcox discovery, Galilee and the other members of the group have agreed to defer drilling of the Williams 2 well until 2016.

Galilee has a 38.94% WI before payout (31.15% WI after payout) in the Spikes Creek East prospects.

Hoffer Extension Area (Galilee 37.5% WI)

Work has continued on the 3D seismic data set that covers the Hoffer extension area.  This has seen continual refinement of a number of the prospects previously identified.  The Joint Venture (JV) now has over 1,500 acres under lease covering a number of quality prospects.